Microsoft sets AI token budgets, warns engineers against excessive Copilot use

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Microsoft EVP Jay Parikh has issued an internal memo warning engineers that maximizing AI token usage is not a company goal. The memo, first reported by 404 Media, reveals that Microsoft has switched its default internal model to OpenAI's more cost-efficient GPT-5.6. The company has introduced token budget targets across every division to manage spending on AI tools. Employees now have access to individual dashboards to monitor their own GitHub Copilot usage and costs. The guidelines highlight that many engineers are currently spending hundreds to thousands of dollars monthly on the tool.

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